Oil prices fell for a second day on Wednesday, following a report on a sharp rise in US crude stockpiles in the world’s biggest oil user and signs that major producers are unlikely to change production policies at next week’s technical meeting.
May Brent crude futures were down 74 cents, or 0.9%, at $85.51 a barrel at 04:20 GMT. The May contract expires Thursday, and the more actively traded June contract fell 68 cents, or 0.8%, to $84.95.
West Texas Intermediate (WTI) crude oil futures for May delivery fell 64 cents, or 0.8%, to $80.98 a barrel.
Prices fell this week after reaching their highest level since October last week, remaining about 3% above the average closing price in the first week of March.
The increase in US crude oil stocks and potential expectations that OPEC+ will not change its production policy next week led to further loosening in oil prices in today’s session. Profit-taking is accelerating after a strong rally in mid-March.
US crude oil inventories rose by 9.3 million barrels in the week ending March 22, according to figures from the American Petroleum Institute (API) on Tuesday. Distillate stocks increased by 531,000 barrels, while gasoline stocks fell by 4.4 million barrels.
Official government data (EIA data) will be published at 1430 GMT on Wednesday.
Earlier this month, OPEC+ members agreed to extend production cuts of approximately 2.2 million barrels per day until the end of June.
OPEC+ will hold an online meeting of the Joint Ministerial Monitoring Committee on April 3 to review the market and members’ implementation of production cuts.
According to the information received, it is unlikely that the allies led by OPEC and Russia, also known as OPEC+, will make any changes in oil production policy until a full ministerial meeting is held in June.
Russia has ordered companies to cut production to comply with the target. Iraq’s oil ministry said on March 18 it would reduce exports to compensate for excess production exceeding quota limits.
According to surveys, OPEC exceeded its targets by 190,000 barrels per day in February; Iraq is also among the producers who have gone to extremism.
